David Sacks Advises U.S. on AI Policy While Holding Broad Industry Stakes

David Sacks, a prominent venture capitalist and longtime tech executive, is helping shape U.S. artificial intelligence policy while holding financial interests in hundreds of AI firms. Sacks, a partner at Craft Ventures and a key figure in Silicon Valley’s investor community, has emerged as a behind-the-scenes influence in Washington’s evolving approach to regulating the rapidly growing AI sector.

Sacks served on former President Donald Trump’s technology advisory council and led policy discussions around AI and crypto. Though no longer a formal government official, he remains involved through advisory roles and high-level relationships with lawmakers and staffers drafting key policy frameworks.

Craft Ventures, Sacks’ fund, has backed dozens of startups that integrate or develop AI tools. PitchBook data shows the firm has invested in at least 120 AI-linked companies. Many of those businesses stand to benefit from favorable federal rules that determine how AI systems are used, monitored, and supported. Sacks also holds equity in other early-stage ventures in the space, further deepening his stake in the sector’s trajectory.

His influence in AI debates comes at a pivotal time. Federal agencies are accelerating their response to AI’s growing role in the economy and society, including questions of transparency, safety, and competitive fairness. Multiple Senate and House committees have held briefings to design the first wave of national laws governing AI models and their use cases. Lawmakers frequently turn to private-sector figures like Sacks for technical insights and market context.

Sacks has advocated for light-touch regulation aimed at preserving innovation while creating voluntary safeguards, echoing the positions of many investors who fear overregulation could stifle U.S. competitiveness. In private conversations, he has urged lawmakers to avoid measures that could create compliance hurdles for startups.

Critics have raised concerns about the lack of transparency and potential for conflicts of interest among advisors like Sacks. They say private-sector players with active investments should be more open about their roles and potentially recuse themselves from influencing policies that could benefit them financially.

Sacks has not commented on recent questions about the extent of his involvement or whether he discloses his firm’s holdings to lawmakers. There is currently no federal requirement for informal advisors to file conflict-of-interest disclosures, though some experts say such rules should apply when outside voices help shape policy.

The blurred lines between investing and policymaking have become more visible as tech firms gain influence over federal decisions. AI, in particular, is attracting intense lobbying from both legacy companies and fast-growing startups. The Biden administration has announced a series of executive actions and AI-testing requirements, but comprehensive legislation remains in early stages.

As national policy coalesces, figures like Sacks continue to shape frameworks that could define how AI integrates into everything from finance to education. Whether those roles remain largely unseen or gain more scrutiny may depend on how lawmakers address transparency and oversight in their own process.